Uncertain is the date for the launch of Salvadoran bitcoin bonds. These are the instruments that will help build the Salvadoran Bitcoin City. The launch was originally scheduled for earlier in the year. However, it has been delayed by current events in Ukraine and slowing global market growth. Alejandro Zelaya from Treasury said El Salvador remains waiting for market conditions to be favorable.
Salvadoran Bitcoin Bonds Launch Date Unknown
Government is rethinking when its Salvadoran bitcoin bond bonds will launch. The funds will go to financing the Bitcoin City. A city with zero income tax and powered by geothermal power, it would also be carbon neutral. Alejandro Zelaya, El Salvador’s minister of treasury, explained that the market conditions and the war in Europe had affected the conditions to issue these bonds.
Zelaya, in an interview for local TV said:
We are waiting for the right moment and the president says when… It depends on how the market is.
Blockstream’s Liquid network and Blockstream were expected to launch the Salvadoran bitcoin bonds in the first three months. Since January, the country has been working on regulations to allow for the issuance these instruments. But, due to the expiration of the issuance period, no bonds were issued.
Zelaya claimed that there were other factors that could have influenced the issue of Salvadoran bitcoin bonds. These include the abrupt fall in the price of Bitcoin. Investors may be wary about investing in these instruments due to the fall in BTC’s price.
Minister referred back to March’s launch, saying conditions weren’t right at the time for bond issuance. He also hinted at future issuance in May and June. September was the most recent possible date.
Get local opinions on Bitcoin bonds
But local economists disagree on why the bonds weren’t issued. Tatiana Marroquin (a Salvadoran economist) stated that certain contradictions prevented the bond from being issued.
Her explanation on the Bitcoin price argument was:
Although the argument about the price of bitcoin is flawed, it is still valid. People who are confident that the price will increase in the future will take out a Bitcoin Bond that is 30 dollars right now. At some point, it will become 60. That would give investors the best incentive.
Let us know your thoughts on the delays in issuing the Salvadoran bitcoin bonds. Leave a comment below.
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